Local authorities are under pressure with their finances as figures reveal they are losing nearly £22m in council tax and £195m in business rates as the recession continues to take its toll. The collection of council tax dropped from 97.1% in 2007/08 to 97% in 2008/09 and business rates fell from 98.8% in 2007/08 to 97.8% in 2008/09. Charles Turner, debt advisory specialist at PricewaterhouseCoopers said that the 'boarded up' properties on the high streetwere just one indication of the 'inevitable consequences facing local authorities', in addition to the record high in personal insolvencies. Turner added that businesses and companies are straining to meet debts with creditors 'jostling' to be first in line, so council tax and business rates may be lower on the priority list. But local authorities have adopted 'early intervention strategies' to anticipate the collection of taxes, and have employed techniques that 'spot potential default situations before they happen and respond by offering services such as advice on benefits' said Steve Beet, partner, local government at PwC. He added: 'We all now know that local authorities across the UK are coming into a "perfect storm" with councils' income from numerous sources falling at a time when there is increasing demand for their services and a number of one off costs to be met.' Turner said that local authorities will need to work 'proactively' to manage the affects of the financial crisis with a view to ensuring that council tax and business rates are perceived to be priority debts.